Picture: REUTERS
Picture: REUTERS

It is common cause that most rural municipalities have serious cash-flow difficulties and some are not paying Eskom and the various water boards to keep afloat.

Some are also now diverting infrastructural grants to operational spending, specifically to pay salaries.

To determine the extent of the problem is a simple matter requiring the conversion of the cash-flow statement to free cash flow for three years for each municipality, which will take 10 minutes per municipality.

No need for "bosberade". However, it will need creative strategies to solve the problem, which is having a devastating effect on service delivery across the country.

David RosenbergMuizenberg

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